Uninor Report Vishal

Launching of UNINOR in Maharashtra & Goa Circle

Uninor

PROJECT REPORT

By

VISHAL GHULE

1


CONTENT

Bonafied certificate i

Abstract ii

Acknowledgement iii

List of tables iv

1. INTRODUCTION Uninor --------------------------------------------------------------3

2. LITERATURE REVIEW Positioning------------------------------------------------------------6 Product-----------------------------------------------------------------9

Global GSM Price-------------------------------------------------------------------10 Place ------------------------------------------------------------------11

Maharashtra(pune) Promotion-----------------------------------------------------------16

Blue wave project Consumer behaviour-----------------------------------------------18

3. DATA ANALYSIS----------------------------------------------------22

4. CONCLUSION --------------------------------------------------------40

5. APPENDIX Questionnaire--------------------------------------------41

2


Introduction

Joint venture between Telenor(67.25%) and Unitech

Group(32.75%).

Started Mobile services in India in December 2009 focusing on

theGSM technology.

India’s 8th nation-wide mobile operator operating in 8 out of

22

telecom circles in the country.

Testing of network in the circles of Kolkata and Rest of Bengal

isgoing on and services will be launched by March 2010.

Hub Head Offices at Delhi, Kochi, Chennai, Bangalore,

Hyderabad,Kolkata, Patna, Mumbai, Lucknow, Guwahati,

Chandigarh, Indore.

Parent Companies

TELENOR :->

• Founded in 1855, Telenor is the largest company in Norway,

with headquarters located at Fornebu, close to Oslo.

• An International wireless carrier with operations in

Scandinavia,Eastern Europe and Asia.

• The 6th largest mobile phone operator in the world, with

more than 172 million subscribers.

3


Unitech :->

• Unitech Group is India’s second largest real estate investment

company,and has recently claimed to be the largest real estate

builder in the country.

• Based in New Delhi and ranks 1484 in Forbes Global 2000

companies,32nd in India.

• Its construction business includes highways, roads,

powerhouses,transmission lines, and it has residential projects

called Unitech Cities/UniWorld, in cities like Mumbai, Delhi,

Kolkata, Chennai, Hyderabad,Bangalore, Kochi, Noida , Greater

Noida, Agra, Lucknow, Varanasi, Gurgaon and Ghaziabad.

• Formed by Ramesh Chandra and originally formed as United

Technical Consultant Private Ltd in 1972 as a soil investigation

company.

Infrastructure :->

• Tower Sharing-Wireless-TT Info Service Ltd, Quippo Telecom

Infrastructure Ltd.

• Telecom, network and radio services- Alcatel, Lucent, Huawei

Technologies India, Nokia Siemens Networks and Ericsson.

• IT services and Infrastructure- Wipro Technologies

• Network management- Huawei, Ericsson and ZTE.

4


• Charging solutions for prepaid and postpaid customers-

Telcordia.

Area of operation of

Uninor

5


POSITIONING

6


Launched with unique pricing strategy :->

Uninor launched its services in 8 circles and hit a subscriber base of over 2 lakh in Tamil Nadu and over 1 lakh in Kerala and a pan-India subscriber base of 12 lakhs by end of 2009. Uninor came up with a unique pricing strategy that moved away from the per second plan.

"Our products and price models are designed with a long term customer relations perspective and not short term wallet share of the customer. We are targeting a segment that demands quality and service, at affordable prices. We are focused in positioning ourselves in this segment," said Stefan Kercza, Head of Tamil Nadu-Kerala Hub.

According to Stefan, all research indicates that on a broader perspective, there are two types of calling patterns in mobile usage - multiple calls with short call duration & minimum number of calls with long call duration. Keeping with both these patterns, at 29 paise per minute, the customer realizes the maximum benefit by talking or calling more. Uninor moved away from the per second approach to take a clear cut segmented approach. "The segment we are targeting looks more for value. Our pricing strategy provides value specific to the usage pattern of our segment."

In Uninor's Talk More Plan, after the initial call setup charge of 39 paise, subsequent minutes are priced at 29 paise. If a customer speaks for 3 minutes his call charges are Rs 1.26. In the per second billing, the same 3 minutes would cost a customer Rs 1.80.

7

http://www.facebook.com/photo.php?pid=4479765&id=187665902522


In the case of the per minute billing, our 29 paise in the Call More Plan still adds value when the customer makes more calls and talks more. Most per minute plans in the market charge 40 paise per minute. Uninor charges 29 paise per minute with Rs 2 rentals only for the day. A customer gets value from the 29 paise per minute when he makes more than 4 calls a day.

The 29 paise plan is trying to appeal to the short callers and benefit the long callers.

Customer focus :-

Uninor promises to bring to its customers -

o Good network and voice clarity & quality of service.

o Simple plans that are aligned to his usage needs and not just low cost plans.

o Adhere to the company's core values- Keep promises, be inspiring, be respectful & make it easy

"Our marketing focus is to keep the customer as the central focus. It is no longer about providing technology; technology is given. It is about empowering the customer with quality service and tailor-made products," said Stefan Kercza.

Uninor is a joint venture with Unitech & the Telenor Group. Uninor brings with it the expertise of the Telenor Group that is No. 1 or close to it in their mobile and telecommunications operations in Europe, the Nordic countries and other Asian countries.

8


4 P’s of MARKETING:->

• Product- Prepaid CDMA and GSM mobile services in 8

circles out of 22 circles in India.

• Price- Dynamic price planning(24/7 badalta discount plan)

Promotion- Slogan- ‘Ab mera number hai’

Brand Ambassador- Young, Energetic, Ambitious youth.

• Place- 8 circles of 22 Indian telecom circles- in cities like

Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore,

Kochi,Noida , Greater Noida, Agra, Lucknow, Varanasi, Gurgaon

and Ghaziabad

9


Product Differentiation

1. Airtel

Airtel instills the emotional connect of a father and son. It starts with a young college lad visiting a small house in a distant village. An old lady opens the door and upon enquiring finds out that the lad is her grandson. Grandson meets grandfather who is angry with the lad's father for leaving them alone in their old. The young lad uses his mobile to call his father, and hands his (young lads) mobile to his grandfather. Upon hearing apologies, the grandfather gets emotional and cries. Thus the young grandson helps to bridge the gap between grandfather and father.

2. Idea

An idea can change life - The priest wants to teach, needy and poor students but lacks resources less no of teachers, far of villages, less classrooms, etc. So uses Idea mobile network and starts classes for these students through speaker phone.The teacher teaching students through mobile phones a great idea to reach the needy students in villages. Everybody wants to help society what they need is a simple Idea, this also highlights that Idea can reach the remote villages where teachers cannot reach.

3. Vodafone

While Vodafone says wherever you go will be there with you always. They positioned this with a pup following a small child the goes in forests, in bathroom, in school bus, etc the pup follows the child everywhere.

4. Reliance mobile- They openly claim that they are present in more than 100,000 villages through advertising.

5. Uninor :- 24*7 BADALATA PLAN - unique pricing strategy of allotting discounts to customersOn the basis of congestion on network in the particular area at the particular time. It gives definite discount of 5% to 60% max on every call. It is displayed on your mobile screen when you dial number. It uses common man for advertising.

10


PRICING

24*7 changing discount plan for those of us who want to make the most of ever changing discount

The 24x7 changing discount plan is a first of its kind plan from Uninor that

gives us the unique benefit of changing discount rates on calls, which

keep changing depending on our locations and time of the day. And

throughout, our mobile screens keep flashing these ever changing

discounts.

The following are details of this tariff plan:

Cost of pack Rs. 48

Validity 365 days

Talk time Rs. 10

Local call(Uninor to Uninor & Others) 50 p/min(5% to 60% discount)

STD 50 p/min

ISD Shown in table1

National roaming Shown in table2

International roaming Shown in table3

SMS local & National 25 p/sms

MMS Rs. 5/event

Myuninor WAP/Internet 10 p/10kb

11


Talk unlimited plan

for those who like to talk unlimited

Cost of the Pack Rs.37 Rs. 38 Rs. 197 Rs. 198

Local Call (Uninor to Uninor) Unlimited Unlimited Unlimited Unlimited

Local Call (Uninor to Others) 49 p / min 1p/sec Unlimited Unlimited

STD 49 p / min 1p/sec 49p/min 1p / sec

Validity 30 days

MMS Rs.5/- per event

myuninor WAP/Internet 10p/10kb

ISD Shown in table1

National Roaming Shown in table2

International Roaming + Shown in table3

SMS Local & National 49p/SMS

Starter kit detail

MRP Rs.49

Validity Lifetime*

Base tariff plan

All local calls 60p

All STD calls 60p

National roaming Shown in table1

International roaming + Shown in table2

ISD Shown in table3

SMS#

Local 60p

National 60p

International Rs.5

*Lifetime validity: Validity for lifetime is applicable as per license period of the circle and is subject

to change in case any regulatory or licensing conditions change in the future. The validity of our

existing license is 24-Jan-2028 and extendable for further period by Govt. of India.

12


Table 1 : ISD tariff

Country Rate (Rs/min)

USA, Canada, South East Asia, Bangladesh, Sri Lanka,

Pakistan,fixed for Australia, New Zealand & UK

6.4

Gulf 11

Africa, Rest of SE Asia, Rest of SAARC, Mobile phones for Australia,

New Zealand & UK

14

Rest of Africa, Rest of Europe 15

Rest of world (excluding special countries & inmarsat calls) 55

INMARSAT 550

Table 2 : National roaming

Uninor

Network

Rate (Rs/min)

Call rates Rate / min Rate / min

Incoming Calls 60 p / min Rs. 1 / min

Outgoing Calls

Local

Uninor to Uninor

to other mobile & landline networks

60 p

80 p

-

Rs. 1.00

STD

60 p

Rs. 1.50

13


Uninor to Uninor

to other mobile & landline networks

80 p Rs. 1.50

ISD

USA, Canada, Europe (F), Singapore & Hong Kong

Sao Tome & Principe, Guinea Bissau, Diego Garcia, Cuba,

Norfolk Islands, Nauru, Solomon Islands, Vanuatu, Cook

Islands, Tuvalu, Tokelau Is, Sakhalin,

Other Countries

INMARSAT Calls

Rs 10

Rs 52

Rs 13

Rs 504

Rs 10

Rs 52

Rs 13

Rs 504

SMS

Local

National

International

Rate / SMS

99 p

Rs. 1.49

Rs. 5.00

Rate / SMS

Rs. 3.45

Rs. 3.45

Rs. 5.00

Table 3 : International roaming

Operator Calling

outside

visited

country

(Rs / min)

Outgoing

SMS

(Rs / SMS)

Calling

within

visited

country

(Rs / min)

Incoming Call

(Rs / min)

GPRS

(Rs / 10KB)

Grameenphone

Bangladesh

65 15 25 55 5.5

Telenor Denmark 140 15 30 70 5.5

Etisalat misr Egypt 170 15 35 27.5 5.5

Digi Malaysia 95 15 35 58 5.5

Telenor Norway 130 15 35 27.6 5.5

14


M1 Singapore 95 15 35 38 5.5

Telenor Sweden 140 15 30 70 5.5

Telenor serbia 140 15 30 70 5.5

Dtac Thailand 95 15 35 58 5.5

Du UAE 185 15 50 115 5.5

AT&T USA 165 15 70 90 5.5

Recharge

Maximum

service

charge

(Rs)

Processin

g fee (Rs)

Service

tax (Rs)

Talk value (Rs)

10 2 0.93 7.07

20 2 1.87 16.13

30 2 2.80 25.20

50 2 4.67 43.33

100 2 9.34 88.66

150 0 - 150.00

15


First recharge bonus

Maximum service

charge (Rs)

Total talk value on first recharge (Rs)

50 55.00

100 115.00

150 175.00

300 355.00

500 600.00

16


PROMOTION :->

Product Promotion• Creative strategy- Informational with Positive appeal ‘Pride’

• Slogan- ‘Ab mera number hai’

• Advertising in Hindi, Kannada, English and many more Indian

regional languages.

• The series of television ads (by creative agency Leo Burnett)

show ‘young people in real-life situations’ rather than models or

celebrities.

• Even the outdoor campaign show young, ambitious, real

people looking for challenges, wanting to make things happen.

• The company has around 2 lakh retail points across the

country,including rural areas, apart from 50 company-owned

stores.

• Innovational promotion in small towns.

Institutional Promotion

• For brand empowerment, it is working an online initiative with

socialmedia.

• Brand Philosophy- Empower People.

Media Mix

• Print and Broadcast ads

• Motion Pictures

• Brochure and booklets

• Posters

• Billboards

• POP displays

17


• Logos

Targeting• The company is targeting for 8% market share in India by

2018.

• The country will have over 1.2 billion customers by 2018 as

against540 million now.

• Thus Uninor is targeting for 80 million customers by 2018.

• Break-even in 3 years

• Positive operating cash flow within 5 years in India.

• Targeting youth as well as all the ambitious people.

• Selective specialization targeting strategy

• First priority is to roll out across the country; a credible

market sharecan be built only after that. They hope to launch

across the entire country by the end of the year.

18


Consumer behaviour

TITLE: YOUTH GO TO MARKET

Go to market strategies define a holistic process of reaching your customers.

Focuses on Three Dimensions

What to sell - Schemes & offers

How to sell - New sales model

Whom to sell - Customer Base and Customer Partnerships

Sample and sample size

We took the sample of 700 people all around the Pune.

We covered areas like Wakad, Hinjewadi, Hadapasar, Pimpri Chinchawad and

Tathawade to collect the data.

We even conducted the e-survey to collect the data.

(http://www.kwiksurveys.com/online-survey.php?surveyID=KNOEGF_a63f8703)

Mostly the data is collected from the youth.

58%(16-25 years)

23 %(26-34 years)

What was given us to do?

19

http://www.kwiksurveys.com/online-survey.php?surveyID=KNOEGF_a63f8703..........plz


What is the best way to communicate the brand?

How they get to know (Source/Medium) ?

What schemes do they prefer?

Cost preference

Frequency of Recharges

Switching Operator(Who and Why)

Where and How they purchase

Why will they buy your product

How they decide what to purchase

What they are willing to pay

What is their value proposition

What is the best way to communicate the brand and How they get to

know (Source/Medium) ?

What we got from our survey is that people get to know about the brand mostly by :-

o Television(24.43%)

o Friends and relative(24.28%)

What schemes do they prefer?

Nearly 50% people said they will go in for free calling schemes.

17% said they go for per second billing

15% for free messaging

14% for night calling

20


Frequency of Recharges

Nearly 45% said weekly

Nearly 31% said monthly

Switching Operator(Who and Why)

Nearly 50% people of think of switching operator in between 6 months to 2 years.

Nearly 38% people goes for a brand that is priced competitively.

24% goes for better feature.

Nearly 21% are using the same brand because they are using it for quite long.

Where and How they purchase 82% said retail shops and retail shops came out to

be the ultimate winner.

Nearly 20% go in for tariffs in between Rs 101-200.

Nearly 19% public goes for full talktime options.

17% goes for recharge in between Rs. 10-50.

How they decide what to purchase

They go for brand that have strong price advantage( nearly 54%)

14% people goes for established brand.

21% goes for bundled services.

What they are willing to pay?

21


Nearly 31% people are willing to pay in between Rs 0 to 100.

Nearly 21% are willing to pay in between Rs 200-300

Nearly 19% are willing to pay in between Rs 100-200

What is their value proposition

The youth in the age group of 16-25 years are price conscious , they want better features

and better services like WAP/GPRS. They prefer plans like free calling and per second billing.

They expect better connectivity, wide coverage and low tariffs.

22


Data Analysis

1.

AGE RESPONDENTS Percentage

a 15 yrs & below 30 4.28

b 16-25 yrs 406 58.00

c 26-34 yrs 157 22.42

d 35-45 yrs 104 14.85

e 46-50 yrs 3 0.42

f 51 & above 0 0

700 100

15 yrs & below

16-25 yrs 26-34 yrs 35-45 yrs 46-50 yrs 51 & above

0

50

100

150

200

250

300

350

400

450

RESPONDENTSPercentage

2.

GENDER Percentage

a M 593 84.71

b F 107 15.28

700 100

23


593

107

MF

3.

EDUCATION Respondent Percentage

a SSC/HSSC 112 16

b Bachelors degree 167 23.85

c Masters degree 106 15.14

d professional degree 224 32

e others 91 13

700 100

SSC/HSSC Bachelors degree

Masters degree professional degree

others0

50

100

150

200

250

1623.85

15.1432

13

RespondentPercentage

4.

OCCUPATION Respondent Percentage

a STUDENT 406 58

b IT/BPO Sector 68 9.71

c CONSULTING/BANKING 30 4.28

d SELF EMPLOYED PROFESSIONAL 101 14.42

e family business 74 10.57

f others 21 3

24


700 100

406

68

30

101

7421

STUDENT

IT/BPO Sector

CONSULTING/BANKING

SELF EMPLOYED PROFESSIONAL

family business

others

5.

MONTHLY INCOME Respondent Percentage

a RS.0-500 323 46.14

b RS.5001-10000 98 14

c Rs.10001-15000 101 14.42

d Rs.15001-20000 139 19.85

e Rs.20001-30000 21 3

f Rs.30001-ABOVE 18 2.57

700 100

RS.0-500

RS.5001-10000

Rs.10001-15000

Rs.15001-20000

Rs.20001-30000

Rs.30001-ABOVE

0 50 100 150 200 250 300 350

Respondent

25


6.

Purpose:- The main purpose of this question is to know about which service provider are being more

used by youth.

BRAND YOU OWN Reapondents Percentage

a RIM 130 18.57

b TATA INDICOM 58 8.28

c AIRTEL 246 35.14

d VODAFONE 97 13.85

e OTHERS 169 idea=94,bsnl=45 24.14

700 100

130

58

246

97

169

RIMTATA INDICOMAIRTELVODAFONEOTHERS

7. Purpose:- Purpose of this question is to know about what adjacctly they think before

taking the connection.

BRAND SELECTION

CRITERION Respondent Percentage

a Better features 165 23.57

b Priced competitively 263 37.57

c Have been using this brand for long 143 20.42

d

Peers/family member using &satisfied with

the brand 42 6

26


e Phone reviews 17 2.42

f

Catchy and attractive

advertisements 39 5.57

g Others 31 4.42

700 100

165

263

143

42

17

3931

Better features

Priced competitively

Have been using this brand for long

Peers/family member using &satis-fied with the brand

Phone reviews

Catchy and attractive advertisements

Others

8.

How much you are

willing to pay per month

for your phone(in Rs) Respondent Percentage

a 0-100 214 30.57

b 100-200 133 19

c 200-300 147 21

d 300-400 101 14.42

27


e

400 &

above 105 15

700 100

0-100

100-200

200-300

300-400

400 & above

0 50 100 150 200 250

214

133

147

101

105

Respondent

9.

How often do you change (plan to

change) service provider? Respondents Percentage

a 0-6 months 145 20.71

b 6months-1yr 171 24.42

c 1-2 yrs 174 24.85

d 2+ yrs 210 30

700 100

145

171

174

210

0-6 months6months-1yr1-2 yrs2+ yrs

28


10.

Would you like to stick to

your current brand in the

future or willing to

purchase a different

brand Respondents Percentage

a yes 492 70.28

b no 208 29.71

700 100

492

208

yes no

11.

Would you be open to

buying a brand that is

totally new to market? Respondents Percentage

a yes 329 47

b no 202 28.85

c don’t know 169 24.14

700 100

29


329

202

169

yesnodon’t know

12.

What attracts you to

brand in spite of it being

new to brand? Respondent Percentage

a Strong price advantage 376 53.71

b Established brand name 94 13.42

c Heavy promotional ads 41 5.85

d Bundled with a service 144 20.57

e Easier to use 36 5.14

f others 9 1.28

700 100

Strong price advantage

Established brand name

Heavy promotional ads

Bundled with a service

Easier to use

others

0 50 100 150 200 250 300 350 400

376

94

41

144

36

9

Respondent

13.

You are? Respondents Percentage

30


a postpaid 186 26.57

b prepaid 514 73.42

700 100

186

514

Chart Title

postpaidprepaid

if prepaid then

14.

What tariff you mostly

choose? Respondent Percentage

a Rs. 0-10 24 3.42

b Rs. 10-50 118 16.85

c Rs.51-100 196 28

d Rs.101-200 137 19.57

e Rs.201-300 59 8.42

f above 300 34 4.85

g full talktime 132 18.85

700 100

31


Rs. 0-10

Rs. 10-50

Rs.51-100

Rs.101-200

Rs.201-300

above 300

full talktime

0 50 100 150 200 250

Respondent

15.

What sort of schemes

would you prefer Respondent Percentage

a Free calling 346 49.42

b Free messaging 106 15.14

c Per minute 29 4.14

d Per second 119 17

e Night calling 100 14.28

700 100

Free calling

Free messaging

Per minute

Per second

Night calling

0 50 100 150 200 250 300 350 400

Respondent

16.

32


What is the

frequency of your

recharge

Responde

nts

Percenta

ge

a daily 40 5.71

b weekly 311 44.42

c Monthly 219 31.28

d

occassion

aly 130 18.57

700 100

40

311

219

130

daily weekly Monthlyoccassionaly

17.

What is your point of

purchase of recharge and

sim cards Respondents Percentage

a retail shops 574 82

b company stores 97 13.85

c others 29 4.14

700 100

33


574

97

29

Chart Title

retail shopscompany storesothers

18.

What following services

you use? Respondents Percentage

a Voice portal service 156 22.28

b CRBT service 78 11.14

c SMS (P to A) 183 26.14

d WAP/GPRS 283 40.42

700 100

Voice portal service

CRBT service

SMS (P to A)

WAP/GPRS

0 50 100 150 200 250 300

156

78

183

283

Respondents

19.

What are the sources from

which

Respondents Percentage

34


you get the information about

various services and plans by

operators

a Newspaper 102 14.57

b Television 171 24.42

c Radio 79 11.28

d Hoardings 88 12.57

e Friends and relatives 170 24.28

f Others 90 12.85

700 100

35


Newspaper

Television

Radio

Hoardings

Friends and relatives

Others

0 20 40 60 80 100 120 140 160 180

102

171

79

88

170

90

Respondents

20.

How you decide to choose

the operator Respondent Percentage

a Network 162 23.14

b Economical 191 27.28

c Services like VAS 91 13

d Better plans 184 26.28

e

What your friends

and relatives have 72 10.28

700 100

36


Network

Economical

Services like VAS

Better plans

What your friends and relatives have

0 50 100 150 200 250

162

191

91

184

72

Respondent

21.

What you expect

from

the operator Respondent Percentage

a Better connectivity 230 32.85

b Wide coverage 142 20.28

c Low tariffs 210 30

d Better customer support 59 8.42

e Good value added services 59 8.42

700 100

37


Better connectivity

Wide coverage

Low tariffs

Better customer support

Good value added services

0 50 100 150 200 250

230

142

210

59

59

Respondent

22.

Have you ever heard of

Uninor? Respondents Percentage

a Yes 202 28.85

b No 498 71.14

700 100

202

498

YesNo

Value proposition

• Maximize the enabling effect of mobile telecommunications

• Promote safer products and services

38


• Make responsible business practices part of everything Uninor

does.

• Various value packs for ISD users- USA/Canada,

Singapore/Malaysia, Gulf packs.

• Simple tariff plans which are easily understandable.

• Quick responses through circle heads.

Strengths

• Joint venture between world’s 6th largest telecom company

and India’s 2nd largest real estate company.

• Least capital investment as various services are outsourced.

• Least number of employees.

• Decentralized management structure

• simple prepaid plan in which a local call is priced at 29 paisa

a

minute.

• The more you talk, the lower the price gets.

• Different segmentation strategy as compared to competitors.

• Use of real young people in promotion instead of any role

model.

• Innovative promotional strategy.

Weakness

• It has still not launched postpaid schemes.

• Late entrant in the market.

39


• Too much outsourcing may go against the health of the

company.

Opportunities

• With rising individual saving rate with 9% growth rate, and

expected increase in market size by 500 million in 2010(almost

double), the company has great opportunities.

• Approximately 10-15 million mobile connections are being

added every month. The national mobile tele-density is about

39 per hundred, Urban areas-75 (in Mumbai), but Rural areas-

13.

• Micro segmentation strategy in rural markets adopted by the

company.

• Falling handset prices and tariff rates.

• Increasing network distribution.

Opportunities Statistics-

• Cell phone ownership-

Total- 51%

Male- 56%

Female- 44%

Youth (16-19 years)- 64%

Amount spent on Mobile per month (average)-

Boys- Rs. 125 (71% of pocket money)

Girls- Rs.106 (62% of pocket money)

Threats40


• Competitors like Airtel, Reliance, BSNL, Vodafone

• Extensive Government regulations through TRAI as regards

introduction of new services.

• Bloodbath in the market due to price war.

• Uninor is likely to be followed by Etisalat of United Arab

Emirate’s Pvt. Ltd, the Videocon group-promoted Datacom, and

Bahrain’s Batelco

co-owned STel.

Ansoff matrix

Uninor is at “Market-developement strategy”

Market opportunity Analysis41


• Can the benefits involved in the opportunity be articulated convincingly to a defined target market?Ans- The strategy of ‘micro-segmentation and targeting youth’ along with making common youth as brand ambassador of the company shows that Uninor has very well defined itstarget market. However it will have to watch its competitors’ moves as well.

• Can the target market be located and reached with cost-effective media and trade channels?Ans- As Uninor has appointed over 1,000 distributors and is present in over 300,000 points of sale and outsourced infrastructural services, it can reach target market along with being cost-effective.

• Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?Ans- As the company has recently lined up a Rs 5,000 cr bridge finance with the State Bank of India, which includes bank guarantees and a letter of credit that would help the company fund its 22 circle rollout.

• Can the company deliver the benefits better than any actual orpotential competitors?Ans- Uninor boasts of offering the cheapest call rate and all the regional heads are responsible for responding to the concerned customers, they may deliver better services to consumers, butUninor will certainly have to keep giving better services at cheaper rate in order to gain its competitors’ market share as well as gaining potential buyers

• Will the financial rate of return meet or exceed the company’srequired threshold for investment?Ans- For this Uninor has sufficient loans from financial institutions and even its parent companies Telenor and Unitech are providing ample financial support. Moreover Uninor has set its target of getting Break-even in 3 years and Positive operating cash flow within 5 years in India, so the company is right now investing in market building for itself.

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Uninor Report Vishal

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